Digital TV makers embrace built-in tuners

[Gregg Lengling]

Korea's digital TV market is likely to shift toward advanced models that have built-in digital tuners within the second half of this year, industry sources said yesterday.

Almost all digital TV models available on the market require separate set-top boxes, which is not only costly but also difficult to set up since a number of customers have cable TV connections and other lines hooked up to DVD players.

New technologies are transforming the trend, particularly as major electronics makers begin to roll out tuner-enabled digital TVs.

LG Electronics, Samsung Electronics and Daewoo Electronics have slashed their prices for tuner-enabled models and introduced new lineups targeting those who want to have simpler and easier-to-install digital TVs.

The move came as Korea's landline digital TV broadcasting is scheduled to spread to five key provincial cities in the coming months. Additionally, the United States will force manufacturers to install built-in tuners in digital TVs that have 36-inch or larger screens from July next year.

Early this year, digital TVs with built-in tuners were 800,000 won ($677) more expensive than basic models that require set-top boxes. But the price gap has since narrowed to some 300,000 won, spurred by fierce competition among local manufacturers.

Given that digital TV set-top boxes are now priced at between 600,000 won and 700,000 won, customers are now being lured to purchase built-in models that have price advantages.

Major TV makers also plan to install low-priced tuner chips in their latest models in a bid to slash prices further, and once tuner-enabled models become mainstream through mass production, the prices are expected to slide ever further.

The demand for digital TVs is also forecast to go up steadily, though the current economic slowdown is worrying electronics makers.

Samsung said it would introduce a new lineup of projection and plasma display panel TVs with built-in tuners next month and stage massive marketing campaigns across the nation.

when digital broadcasts are rolled out in the five provincial cities.

The portion of tuner-enabled TV models at Samsung will go up from 20 percent to 30 percent in the second half, a Samsung official said.

LG Electronics, which has its own digital TV tuner solutions, is strengthening its position by jacking up the portion of tuner-enabled models to about 30 percent. The ratio will go up to 40 percent later this year, company officials projected.

The company, competing with Samsung at home and abroad in the high-end TV sector, recently unveiled the world's first 50-inch PDP TV with a digital tuner.

Daewoo also plans to vie for a leading position in the digital TV sector by releasing TVs with built-in tuners early next year.

Korea's digital broadcasting started in October 2001 in the Seoul metropolitan area. More than 1.4 million digital TVs have been sold so far, with the portion of tuner-enabled models at less than 10 percent.

(Note this is in Korea...from a Korean Newspaper)